Global Economic Intersection
Advertisement
  • Home
  • Economics
  • Finance
  • Politics
  • Investments
    • Invest in Amazon $250
  • Cryptocurrency
    • Best Bitcoin Accounts
    • Bitcoin Robot
      • Quantum AI
      • Bitcoin Era
      • Bitcoin Aussie System
      • Bitcoin Profit
      • Bitcoin Code
      • eKrona Cryptocurrency
      • Bitcoin Up
      • Bitcoin Prime
      • Yuan Pay Group
      • Immediate Profit
      • BitQH
      • Bitcoin Loophole
      • Crypto Boom
      • Bitcoin Treasure
      • Bitcoin Lucro
      • Bitcoin System
      • Oil Profit
      • The News Spy
      • Bitcoin Buyer
      • Bitcoin Inform
      • Immediate Edge
      • Bitcoin Evolution
      • Cryptohopper
      • Ethereum Trader
      • BitQL
      • Quantum Code
      • Bitcoin Revolution
      • British Trade Platform
      • British Bitcoin Profit
    • Bitcoin Reddit
    • Celebrities
      • Dr. Chris Brown Bitcoin
      • Teeka Tiwari Bitcoin
      • Russell Brand Bitcoin
      • Holly Willoughby Bitcoin
No Result
View All Result
  • Home
  • Economics
  • Finance
  • Politics
  • Investments
    • Invest in Amazon $250
  • Cryptocurrency
    • Best Bitcoin Accounts
    • Bitcoin Robot
      • Quantum AI
      • Bitcoin Era
      • Bitcoin Aussie System
      • Bitcoin Profit
      • Bitcoin Code
      • eKrona Cryptocurrency
      • Bitcoin Up
      • Bitcoin Prime
      • Yuan Pay Group
      • Immediate Profit
      • BitQH
      • Bitcoin Loophole
      • Crypto Boom
      • Bitcoin Treasure
      • Bitcoin Lucro
      • Bitcoin System
      • Oil Profit
      • The News Spy
      • Bitcoin Buyer
      • Bitcoin Inform
      • Immediate Edge
      • Bitcoin Evolution
      • Cryptohopper
      • Ethereum Trader
      • BitQL
      • Quantum Code
      • Bitcoin Revolution
      • British Trade Platform
      • British Bitcoin Profit
    • Bitcoin Reddit
    • Celebrities
      • Dr. Chris Brown Bitcoin
      • Teeka Tiwari Bitcoin
      • Russell Brand Bitcoin
      • Holly Willoughby Bitcoin
No Result
View All Result
Global Economic Intersection
No Result
View All Result

Concordian Economics, Part 2: Geometric Representation

admin by admin
May 31, 2016
in Uncategorized
0
0
SHARES
80
VIEWS
Share on FacebookShare on Twitter

Written by Carmine Gorga, The Somist Institute

 The geometry of Concordian economics is better evaluated when put in relationship with the geometry of classical and neoclassical economics, which as seen in the following Slide 1 (after page break) is built on points and lines, lines resulting from the disconnected measurements of comparative statics. 

concrdian.economics.logo

 This geometry, as is well known, yields a black box:

ce.slide.1

The central figure of Concordian economics is given in the following Slide 2, in which the entire economic process is observed at a glance. It represents the equivalence of the Production of real wealth (aggregate supply) to the Distribution of ownership rights over real and monetary wealth and to the Consumption or expenditure of monetary wealth (aggregate demand).

This figure indicates that a cycle of the economic process is completed when the entire production of the period is sold to the consumer. Then an exchange occurs between money and real goods. For this exchange to occur, both the producer and the consumer, in an ordered society, must be the legal owners of the wealth they exchange.

ce.slide.2

The full potential of the geometry of Concordian economics is realized when this figure is seen as a dynamic representation of the economic reality. In other words, one needs to rotate at ever increasing speed each rectangle in Slide 2 about its geometric center. The Distribution Process can also be represented as enclosed in a rectangle.

One then obtains the image of three circles rotating around each other, as in a Venn diagram.  And what is a circle if not a two-dimensional image of a sphere? Then, assuming perfect equilibrium in the system, one obtains the vision of three intercompenetrating spheres rotating inside each other.

On this assumption, a projection of the development of these three basic values over time would yield three lines conflated into one—just as in mainstream economics. (It is not generally realized that any demand and supply analysis yields three points:  the point on the supply curve, the point on the demand curve, and the hidden point of the conflation of demand and supply.)

A more realistic assumption of Concordian economics is that these values differ over time. Thus one can assume that the trend line of the values of distribution of ownership rights (DO) tends to remain rather constant over time; however, because of the relative ease of creation of monetary values, the trend line of the monetary wealth (MW) tends to grow at a faster rate than the trend line of real wealth (RW), up to a certain point when it collapses, as indicated in the following figure:

ce.slide.3

It is through reasoning and calculations such as these that one discovers “the bubble” and consequently can develop policies to reduce the amount of lost real income suggested by areas a and alternative areas a’ and a’’.

The beginning of analysis in Concordian economics occurs not only on these overarching issues of theory and policy but in the discovery of the details of the economic process by disaggregating each one of the three major processes of Slide 2 into their component elements. The comprehension of this stage of Concordian economics is facilitated by prior understanding of Austrian economics (see esp. Hayek, 1935), in which the exchange occurs as a consequence of variations in relative prices that prevail in differentiated markets for money and consumer goods, capital goods, (and goods to be hoarded). One then obtains:

ce.slide.4

ce.slide.5

ce.slide.6

These disaggregated components of the economic process are put back together again at the moment of the exchange of each one of them for the corresponding value of monetary with real wealth (again, both agents are the owners of the wealth they exchange), as in the following figure:

ce.slide.7

This figure strongly resembles a well known figure in the physical sciences, the image of a strange or a Lorenz attractor:  Will detailed econometric analysis confirm the existence of this similarity?

ce.slide.8

A Method for the Transformation of Keynes’ Model

ce.slide.9

ce.slide.10

ce.slide.11

 


Articles in this series:

  • Concordian Economics, Part 1: Intoduction
  • Concordian Economics, Part 2:  Geometric Representation (this article)
  • Concordian Economics, Part 3:  Mathematics (to be posted)
  • Concordian Economics, Part 4:  The Business Cycle (to be posted)
  • Concordian Economics, Part 5:   Analysis and the Black Box of Saving (to be posted)

Appendix

Symbols, Meanings, and Definitions

Symbols in Concordian economics
ERs = energy-units
MUs = matter-units
VUs = value-units
H = hoarding
P = production of all real goods and services
D = distribution of ownership rights over real and monetary wealth
CG = consumer goods
KG = capital goods
GH = goods hoarded
OCG = ownership of consumer goods
OKG = ownership of capital goods
OGH = ownership of goods hoarded
EP = economic process
PED = principle of effective demand
npW = nonproductive wealth
pW = productive wealth
MY = monetary income
E = expenditure
Eh = expenditure to purchase goods to be hoarded
Ek = expenditure to purchase capital goods
Eg = expenditure to purchase consumer goods
If = expenditure on fixed capital
Iw = expenditure on working capital
Ck = expenditure on capital goods
Cg = expenditure on consumer goods
p = rate of change in total production
d = rate of change in the values of distribution of ownership rights
c = rate of change in total expenditure
r = the rate of interest
d = existing distribution of values of ownership rights
mec = marginal efficiency of capital
YL = labor income
rW = income from ownership of real and monetary wealth (capital income)
R = rent from land and natural resources
w = value of real wealth
m = value of monetary wealth.
***
Meanings in Concordian economics and mainstream economics
Y = income produced and consumed in mainstream economics
Y = income produced, distributed, and consumed in Concordian economics
C = consumption or expenditure to buy consumer goods in mainstream economics
C = consumption or any type of expenditure in Concordian economics
S = saving means literally 100,000 things in mainstream economics
S = saving means financial savings in Concordian economics
I = investment is equal to saving in mainstream economics
I = investment is all productive wealth in Concordian economics
***
Definitions in Concordian economics and mainstream economics

 concordian.appendix.1.part.1concordian.appendix.1.part.2concordian.appendix.1.part.3

 

 


Note:  This series has been adapted from Beyond Keynes …. Toward Concordian Econometrics, International Journal of Applied Economics and Econometrics, Part III of the Special Issue on J.M. Keynes, Vol. 20, No. 1, Jan-March 2012, pp. 248-277.  The references for this work are listed at the end of that paper.


Previous Post

You’ll Never Believe How Goldman Manipulated Tesla Stock

Next Post

Documentary Of The Week: Media Propaganda

Related Posts

Bitcoin Price Sinks Below $26,750 As Fed Says Rate Hikes Are Not ‘Appropriate’
Economics

Bitcoin Price Sinks Below $26,750 As Fed Says Rate Hikes Are Not ‘Appropriate’

by John Wanguba
March 22, 2023
US Raises Interest Rates Despite Banking Mayhem
Business

US Raises Interest Rates Despite Banking Mayhem

by John Wanguba
March 22, 2023
Does Crypto Copy Trading Work?
Economics

Does Crypto Copy Trading Work?

by John Wanguba
March 22, 2023
Is crypto investment safe?
Economics

Is Crypto Investment Safe?

by John Wanguba
March 21, 2023
Bitcoin Price Surge Breathes Life Into Collapsing Crypto Firms
Economics

Bitcoin Price Surge Breathes Life Into Collapsing Crypto Firms

by John Wanguba
March 21, 2023
Next Post

Documentary Of The Week: Media Propaganda

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Browse by Category

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized

Browse by Tags

adoption altcoins bank banking banks Binance Bitcoin Bitcoin market Bitcoin mining blockchain BTC business China crypto crypto adoption cryptocurrency crypto exchange crypto market crypto regulation decentralized finance DeFi Elon Musk ETH Ethereum Europe finance FTX inflation investment market analysis Metaverse mining NFT nonfungible tokens oil market price analysis recession regulation Russia stock market technology Tesla the UK the US Twitter

Archives

  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • August 2010
  • August 2009

Categories

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized
Global Economic Intersection

After nearly 11 years of 24/7/365 operation, Global Economic Intersection co-founders Steven Hansen and John Lounsbury are retiring. The new owner, a global media company in London, is in the process of completing the set-up of Global Economic Intersection files in their system and publishing platform. The official website ownership transfer took place on 24 August.

Categories

  • Business
  • Econ Intersect News
  • Economics
  • Finance
  • Politics
  • Uncategorized

Recent Posts

  • Bitcoin Price Sinks Below $26,750 As Fed Says Rate Hikes Are Not ‘Appropriate’
  • US Raises Interest Rates Despite Banking Mayhem
  • Does Crypto Copy Trading Work?

© Copyright 2021 EconIntersect - Economic news, analysis and opinion.

No Result
View All Result
  • Home
  • Contact Us
  • Bitcoin Robot
    • Bitcoin Profit
    • Bitcoin Code
    • Quantum AI
    • eKrona Cryptocurrency
    • Bitcoin Up
    • Bitcoin Prime
    • Yuan Pay Group
    • Immediate Profit
    • BitIQ
    • Bitcoin Loophole
    • Crypto Boom
    • Bitcoin Era
    • Bitcoin Treasure
    • Bitcoin Lucro
    • Bitcoin System
    • Oil Profit
    • The News Spy
    • British Bitcoin Profit
    • Bitcoin Trader
  • Bitcoin Reddit

© Copyright 2021 EconIntersect - Economic news, analysis and opinion.

en English
ar Arabicbg Bulgarianda Danishnl Dutchen Englishfi Finnishfr Frenchde Germanel Greekit Italianja Japaneselv Latvianno Norwegianpl Polishpt Portuguesero Romanianes Spanishsv Swedish